By KAREN DAMATO
Joint property owners, 401(k) matches and deductions for medical expenses
 My son and I own a residential rental property together. I’m 82, and he is 52 and is to receive the property at the time of my death. We have owned it for about eight years. Can I gift my half directly to him now without either of us paying gift taxes or a tax penalty at this time?
In many cases, it is possible to make a sizable gift like this without any immediate federal tax hit; the answer would depend in part on the value of the property and any past taxable gifts you had made. But a big gift could affect both the estate taxes and income taxes your family will owe down the road. And there are often trade-offs between the two taxes, which you’ll need professional help to sort out, says Martin Shenkman, a lawyer in Paramus, N.J.
Another issue: Mr. Shenkman says a rental property “in almost all cases” should be owned through a limited-liability company, rather than by one or more individuals directly, to limit legal exposure.
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